Tax battle between Hebron Academy, town heads to Maine Supreme Court

Town wants to tax school's ice arena rentals

The Maine Supreme Court will decide whether Hebron Academy's ice hockey arena should be taxed when it is being rented out for events not associated with the school.

The arena had been tax exempt until three years ago when the town of Hebron decided the school should pay taxes because the arena was being rented out for non-school functions.

On Wednesday, both sides made their case to the state Supreme Court.

The lawyer for the town of Hebron said the school should pay taxes because it is making money off arena rentals.

"The legislature has said that to be exempt from property taxes, an organization must use and occupy its property solely for its exempt purposes," said town attorney Bryan Dench.

Hebron Academy argued that it takes in $20,000 a year in rentals, which helps offset the $300,000 operational cost for the arena.

"It is a benefit to our community, to the youth groups, the area high schools that have used it and to the citizenry," said Hebron Academy Head of School John King.

Because Hebron Academy was classified as a literary and scientific institution, most of its real estate is exempt from taxes by the town.

However, one selectman said renting the rink for groups who have nothing to do with the institution changes the playing field."It seems fairly clear to us that by renting these properties out, they are no longer being used solely by the academy," said Hebron Selectman Daniel Eichorn.

King said if the Supreme Court rules the rink is no longer tax exempt, it could cost them tens of thousand of dollars and hurt the community.

"For Hebron Academy, it would mean we would have to make a swift decision about discontinuing offering our facilities to outside users," said King.

It will likely be several weeks before the Supreme Court makes a ruling on the case.